Fed Releases Additional Information on 2019 Stress Tests

As part of its commitment to increase the transparency of the supervisory stress testing process, the Federal Reserve today released an 80-page document detailing the models and methodologies it will use for this year’s tests.

Specifically, the document provides an overview of the Fed’s approach to supervisory model development and validation; a summary of the supervisory modeling framework and methodology; detailed descriptions of the supervisory stress test models; and additional disclosures for certain material portfolios. In addition, the document contains an appendix with a comprehensive list of supervisory model changes effective for the 2019 Dodd Frank Act stress testing cycle.

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